Bad Credit But Need A Mortgage ?Posted by Nick Niesen on October 29th, 2010 Bad Credit Mortgage Bad credit mortgage loans are meant especially for the people who are suffering with bad credit. Bad credit mortgages or sub-prime mortgages are becoming more common in today's challenging credit environment and many of the mortgage lenders are now offering very competitive mortgage products to cater for this growing market trend. Change your Life for the Better Bad credit mortgage loans are the loans that are given out to those people with bad credit who can put up a mortgage as a security against the loan. Bad credit mortgage loans have now become the most favored loans. Fortunately, there are simple steps you can take to make sure your bad credit mortgage loan is a blessing, not a curse. Some bad credit mortgage loans carry a pre-payment penalty, so make sure your loan doesn't have one. If you need a bad credit mortgage, then you should find out all the facts before you commit to anything. What's the difference between a bad credit mortgage and a standard mortgage. In essence, a bad credit mortgage is very similar to a standard mortgage. When you choose a bad credit mortgage, you need to be sure that you can meet the required terms; if you can show that you are making regular payments as agreed with the lender, it could help your credit rating. Although the bad credit mortgage market is much smaller than the main mortgage market, it can still seem complicated. A bad credit mortgage broker will have a comprehensive knowledge of all the products on the market and will be able to look at your circumstances to see which products might suit you best. If you have extensive credit card debts, have been declared bankrupt, had a County Court Judgement (CCJ) against you or have had a mortgage application declined in the past, you should ask about a bad credit mortgage from you mortgage broker because you will probably not be approved for a regular mortgage. You'll be able to learn the right way to go about borrowing in the most effective way where bad credit mortgage loans are concerned and all that you need to be prepared for when seeking sub prime financing resources. Mortgage Industry The mortgage industry is experiencing a countrywide credit crunch that has tightened the guidelines for most mortgage lenders, but some are always working with crusading financial institutions that find ways to release new home equity and mortgage refinance programs to the consumers who need it most. That is why you need to ask your mortgage broker exactly what kind of programs he has available for you if your credit score is below 500. If he cannot help you with your refinance or getting you a bad credit mortgage there are other hungry loan officers out there looking for your business. Bad Credit Mortgage rates This credit management strategies can help you make the most of a new loan opportunity, minimizing past damage to your credit and building a strong financial future. The loan you get will carry a higher rate of interest and will have higher closing fees. It is advisable to check the rates with a few bad credit lenders and compare. Even though you have to pay a higher rate, see that the one you settle at is reasonable and the most favorable. At present interest rates are low so try and get the best deal. You can always wait a while, improve your credit score and then get a loan at a low rate of interest. The actual rate available will depend upon your circumstances. Make sure that you do not fall into the trap of getting ridiculously high interest rates, and poor repayment this options certainly do not favor your credit problemsr. Talk to a financial advisor about the local conditions, and see if he or she can give you any guidance on the subject before your final pick. Like it? Share it! More by this author |